3 The heritage exemption
18. Assets can be exempt from Inheritance Tax if
they are of sufficient heritage importance, on condition that
owners undertake to conserve the land, buildings and chattels
and to provide reasonable public access. The 1998 Finance Act
introduced a more rigorous regime for granting heritage exemptions,
raising the quality criterion to 'pre-eminent' heritage importance
and requiring some degree of open access for the public without
a prior appointment. In response to the Committee's recommendations
in 1999, the Revenue and heritage agencies have worked together
more closely in checking that exemption conditions are being met,
and there has been less slippage in the programme of inspections.
The Revenue has also used its website to publicise exempt assets
and public access arrangements and it has extended its register
of assets to include chattels as well as land and buildings.[25]
19. Under the 1998 Act the Revenue has proposed changes
to introduce open access for some of the 1,000 by-appointment-only
agreements that were already in place. It has so far renegotiated
agreements with 16 of the 44 owners who between them hold the
majority of exempt items, to provide open access to 1,900 chattels.
The cases of two other owners who declined to provide open access
were considered by the Special Commissioners in 2004, who did
not uphold the specific variations proposed but confirmed the
principle that the Revenue could review existing undertakings.
Because of the lower quality test for heritage chattels that operated
before the 1998 Act, the Revenue is unlikely to press for all
access agreements to be changed. But it plans to negotiate open
access where justified.[26]
25 C&AG's Report, Executive Summary paras 17-19
and paras 4.2, 4.9; Q 37 Back
26
C&AG's Report, Executive Summary para 18; Ev 13 Back
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